Impact of carbon tax hike on Singapore companies

Green setback: People sit next to a pond with a view of the city skyline in Singapore. The main challenges the country faces in its decarbonisation journey are limited space for renewable energy infrastructure, high costs and investment required, and limited avenues to offset carbon emissions. — AFP

SINGAPORE: Close to 40% of companies in Singapore experienced “minimal impact” from the hike in carbon tax, according to a survey conducted by the Sustainable Energy Association of Singapore (Seas).

A smaller proportion (24.5%) of companies said the increase in carbon tax, which was implemented in January 2024, had led them to reconsider their long-term sustainability strategies, with close to 20% indicating that they have stepped up efforts to reduce emissions and invest in energy-efficient technologies.